The Michigan Strategic Fund approved on July 7 a $100 million program that will provide grants to small businesses around Michigan working to recover from the ongoing impacts of the COVID-19 virus, the Michigan Economic Development Corporation announced.
The state of Michigan has appropriated $100 million of federal CARES Act funding through SB 690, signed into law by Governor Whitmer last week, to implement the Michigan Small Business Restart Program to support Michigan’s small businesses that are reopening and have experienced a loss of income as a result of the COVID-19 crisis.
The Michigan Strategic Fund authorized distribution of the funding across 15 local or nonprofit economic development organizations (EDOs) covering all 83 counties in the state to providing a base amount of $3.5 million per EDO for grants up to $20,000 each to support certain small businesses that have realized a significant financial hardship as a result of the COVID-19 virus. Participating EDOs are as follows:
- Flint & Genesee Chamber – $8,045,455
- InvestUP – $4,545,455
- Networks Northwest – $4,545,455
- Otsego County Economic Alliance – $3,500,000
- Target Alpena – $3,500,000
- The Right Place – $9,545,455
- Lakeshore Advantage – $3,500,000
- Middle Michigan Development Corporation – $3,500,000
- Saginaw Future – $3,545,455
- Lansing Area Economic Partnership – $5,545,455
- Southwest Michigan First – $7,545,455
- Ann Arbor Spark – $8,545,455
- Oakland County – $11,045,455
- Macomb County – $7,545,455
- Detroit Economic Growth Corporation – $15,545,450
The Michigan Small Business Restart Program application will be live starting July 15 at michiganbusiness.org/restart and run through August 5. Funds can be used as working capital to support payroll expenses, rent, mortgage payments, utility expenses or other similar expenses.
To qualify for grant support, businesses must meet the following criteria, based on statutory requirements for the program:
- Is a business or nonprofit that can demonstrate it is affected by the COVID-19 emergency
- Needs working capital to support eligible expenses
- Demonstrates an income loss as result of the COVID-19 emergency
- Has not received a grant through the Michigan Strategic Fund’s Michigan Small Business Relief Program. Businesses who have received support through other COVID-19 relief programs, including the Michigan Small Business Relief Program loans, are eligible to apply for Restart grants.
Additionally, at least 30% of the funds awarded under the program must be provided to women-owned, minority-owned or veteran-owned eligible businesses. The MEDC anticipates that more than 5,000 businesses across the state will benefit from this program.
Per statutory requirements, a monthly report will be provided to the legislature that includes a listing of grants awarded in the previous month and the name of the recipient of each grant provided under the program. All reporting forms will also be available on michiganbusiness.org/restart.
On July 8, the Michigan Strategic Fund also approved the $15 million Michigan Agricultural Safety Grant Program to support the needs of Michigan’s agricultural processors and farms. The program supports the implementation of COVID-19 monitoring and mitigation strategies to protect agricultural employees and the state’s overall food production industry. To learn more and see the grant application which goes live on July 15, visit here: https://www.michiganbusiness.org/press-releases/2020/07/$15-million-in-agricultural-safety-grants-to-provide-critical-relief-to-michigans-farms-and-food-processors.
With the recent action by the MSF Board, the MEDC has launched 17 COVID-19 relief and recovery programs supporting more than 3,100 businesses in the state and helping to retain more than 12,400 jobs across all 83 counties. To learn more about MEDC’s COVID-19 response programs and the impact they are having on economic recovery efforts, visit michiganbusiness.org/covid19response.
